Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Dec. 31, 2017 | Jan. 31, 2018 | |
Document and Entity Information | ||
Entity Registrant Name | ENCISION INC | |
Entity Central Index Key | 930,775 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --03-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 10,683,355 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 |
Condensed Balance Sheets (Unaud
Condensed Balance Sheets (Unaudited) - USD ($) | Dec. 31, 2017 | Mar. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 212,581 | $ 45,117 |
Restricted cash | 25,000 | 50,000 |
Accounts receivable, net of allowance for doubtful accounts of $14,500 at December 31, 2017 and $33,000 at March 31, 2017 | 937,419 | 1,042,281 |
Inventories, net of reserve for obsolescence of $30,000 at December 31, 2017 and $50,000 at March 31, 2017 | 1,246,835 | 1,128,412 |
Prepaid expenses | 143,278 | 62,290 |
Total current assets | 2,565,113 | 2,328,100 |
Equipment, at cost: | ||
Furniture, fixtures and equipment | 3,007,053 | 3,161,687 |
Accumulated depreciation | (2,630,546) | (2,693,302) |
Equipment, net | 376,507 | 468,385 |
Patents, net of accumulated amortization of $232,970 at December 31, 2017 and $212,345 at March 31, 2017 | 268,593 | 253,980 |
Other assets | 18,402 | 16,450 |
TOTAL ASSETS | 3,228,615 | 3,066,915 |
Current liabilities: | ||
Accounts payable | 521,783 | 402,914 |
Accrued compensation | 182,443 | 267,399 |
Other accrued liabilities | 270,707 | 248,130 |
Line of credit | 0 | 275,055 |
Deferred rent | 30,384 | 30,384 |
Total current liabilities | 1,005,317 | 1,223,882 |
Long-term liability: | ||
Deferred rent | 17,724 | 40,512 |
Total liabilities | 1,023,041 | 1,264,394 |
Shareholders' equity: | ||
Preferred stock, no par value: 10,000,000 shares authorized; none issued and outstanding | 0 | 0 |
Common stock and additional paid-in capital, no par value: 100,000,000 shares authorized; 10,683,355 shares issued and outstanding at December 31, 2017 and March 31, 2017 | 23,801,466 | 23,752,131 |
Accumulated (deficit) | (21,595,892) | (21,949,610) |
Total shareholders' equity | 2,205,574 | 1,802,521 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 3,228,615 | $ 3,066,915 |
Condensed Balance Sheets (Unau3
Condensed Balance Sheets (Unaudited) (Parenthetical) - USD ($) | Dec. 31, 2017 | Mar. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts (in dollars) | $ 14,500 | $ 33,000 |
Inventories, reserve for obsolescence (in dollars) | 30,000 | 50,000 |
Accumulated amortization | $ 232,970 | $ 212,345 |
Preferred stock, par value | $ 0 | $ 0 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock and additional paid-in capital, par value | $ 0 | $ 0 |
Common stock and additional paid-in capital, shares authorized | 100,000,000 | 100,000,000 |
Common stock and additional paid-in capital, shares issued | 10,683,355 | 10,683,355 |
Common stock and additional paid-in capital, shares outstanding | 10,683,355 | 10,683,355 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | ||||
NET REVENUE | $ 2,190,305 | $ 2,229,870 | $ 6,716,480 | $ 6,657,875 |
COST OF REVENUE | 956,687 | 1,165,414 | 2,880,101 | 3,394,204 |
GROSS PROFIT | 1,233,618 | 1,064,456 | 3,836,379 | 3,263,671 |
OPERATING EXPENSES: | ||||
Sales and marketing | 569,802 | 638,735 | 1,745,121 | 1,882,337 |
General and administrative | 368,545 | 383,106 | 1,057,810 | 1,087,239 |
Research and development | 223,977 | 300,392 | 635,165 | 880,760 |
Total operating expenses | 1,162,324 | 1,322,233 | 3,438,096 | 3,850,336 |
OPERATING INCOME (LOSS) | 71,294 | (257,777) | 398,283 | (586,665) |
Interest expense, net | (15,343) | (15,093) | (44,165) | (44,681) |
Other income (expense), net | 118 | (1,295) | (400) | 18,931 |
Interest expense and other income (expense), net | (15,225) | (16,388) | (44,565) | (25,750) |
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES | 56,069 | (274,165) | 353,718 | (612,415) |
Provision for income taxes | 0 | 0 | 0 | 0 |
NET INCOME (LOSS) | $ 56,069 | $ (274,165) | $ 353,718 | $ (612,415) |
Net income (loss) per shar - basic | $ 0.01 | $ (0.03) | $ 0.03 | $ (0.06) |
Net income (loss) per share - diluted | $ 0.01 | $ (0.03) | $ 0.03 | $ (0.06) |
Weighted average share - basic | 10,683,355 | 10,678,344 | 10,683,355 | 10,674,548 |
Weighted average share - diluted | 10,707,814 | 10,678,344 | 10,702,493 | 10,674,548 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Operating activities: | ||
Net income (loss) | $ 353,718 | $ (612,415) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Depreciation and amortization | 154,150 | 168,357 |
Share-based compensation expense | 49,335 | 52,411 |
(Recovery from) provision for doubtful accounts, net | (18,500) | 11,000 |
(Recovery from) provision for inventory obsolescence, net | (20,000) | (240,000) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 123,362 | (249,823) |
Inventories | (98,423) | 834,772 |
Prepaid expenses and other assets | (82,940) | (45,741) |
Accounts payable | 118,869 | 152,527 |
Accrued compensation and other accrued liabilities | (85,167) | (71,081) |
Net cash generated by (used in) operating activities | 494,404 | 7 |
Investing activities: | ||
Acquisition of property and equipment | (41,647) | (104,057) |
Patent costs | (35,238) | (21,102) |
Net cash (used in) investing activities | (76,885) | (125,159) |
Financing activities: | ||
Paydown of credit facility, net change | (275,055) | (103,821) |
Change in restricted cash | 25,000 | 0 |
Net cash (used in) financing activities | (250,055) | (103,821) |
Net increase (decrease) in cash and cash equivalents | 167,464 | (228,973) |
Cash and cash equivalents, beginning of period | 45,117 | 292,840 |
Cash and cash equivalents, end of period | $ 212,581 | $ 63,867 |
ORGANIZATION AND NATURE OF BUSI
ORGANIZATION AND NATURE OF BUSINESS | 9 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND NATURE OF BUSINESS | Encision Inc. is a medical device company that designs, develops, manufactures and markets patented surgical instruments that provide greater safety to, and saves lives of, patients undergoing minimally-invasive surgery. We believe that our patented AEM ® We have an accumulated deficit of $21,595,892 at December 31, 2017. A significant portion of our operating funds have been provided by issuances of our common stock and warrants, a line of credit, and the exercise of stock options to purchase our common stock. Should our liquidity be diminished in the future because of operating losses, we may be required to seek additional capital. Our strategic marketing and sales plan is designed to expand the use of our products in surgically active hospitals and surgery centers in the United States. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Basis of Presentation. The accompanying condensed interim financial statements have been prepared, in all material respects, in conformity with the standards of accounting measurements and reflect, in the opinion of management, all adjustments necessary to summarize fairly the financial position and results of operations for such periods in accordance with GAAP. All adjustments are of a normal recurring nature. The results of operations for the most recent interim period are not necessarily indicative of the results to be expected for the full year. Use of Estimates in the Preparation of Financial Statements. Cash and Cash Equivalents. Fair Value of Financial Instruments. Concentration of Credit Risk. We have no significant off-balance sheet concentrations of credit risk such as foreign exchange contracts, options contracts or other foreign hedging arrangements. We maintain the majority of our cash balances with one financial institution in the form of demand deposits. Accounts receivable are typically unsecured and are derived from transactions with and from entities in the healthcare industry primarily located in the United States. Accordingly, we may be exposed to credit risk generally associated with the healthcare industry. We maintain allowances for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments. The net accounts receivable balance at December 31, 2017 of $937,419 and at March 31, 2017 of $1,042,281 included no more than 6% from any one customer. Warranty Accrual. Inventories December 31, 2017 March 31, 2017 Raw materials $ 967,017 $ 857,345 Finished goods 309,818 321,067 Total gross inventories 1,276,835 1,178,412 Less reserve for obsolescence (30,000 ) (50,000 ) Total net inventories $ 1,246,835 $ 1,128,412 Property and Equipment Long-Lived Assets. Patents. Income Taxes. Revenue Recognition. Research and Development Expenses Stock-Based Compensation Stock-based compensation expense recognized under ASC 718 for the three and nine months ended December 31, 2017 was $16,143 and $49,335, respectively, and for the three and nine months ended December 31, 2016 was $17,998 and $52,411, respectively, which consisted of stock-based compensation expense related to grants of employee stock options and restricted stock units ("RSUs"). Segment Reporting. Recent Accounting Pronouncements. In July 2015, the FASB issued Accounting Standards Update 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory, ("ASU 2015-11"). ASU 2015-11 affects reporting entities that measure inventory using first-in, first-out (FIFO) or average cost. Specifically, ASU 2015-11 requires that inventory be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. ASU 2015-11 is effective for fiscal years beginning after December 15, 2016 and it has been adopted. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) ("ASU 2016-02"), which modified lease accounting for both lessees and lessors to increase transparency and comparability by recognizing lease assets and lease liabilities by lessees for those leases classified as operating leases under previous accounting standards and disclosing key information about leasing arrangements. ASU 2016-02 will be effective for the Company beginning in its third quarter of 2020 and early adoption is permitted. The Company is currently evaluating the timing of its adoption and the impact of adopting the new lease standard on its consolidated financial statements. However, the ultimate impact of adopting ASU 2016-02 will depend on the Company's lease portfolio as of the adoption date. |
BASIC AND DILUTED INCOME AND LO
BASIC AND DILUTED INCOME AND LOSS PER COMMON SHARE | 9 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
BASIC AND DILUTED INCOME AND LOSS PER COMMON SHARE | We report both basic and diluted net income (loss) per share. Basic net income or loss per common share is computed by dividing net income or loss for the period by the weighted average number of common shares outstanding for the period. Diluted net income or loss per common share is computed by dividing the net income or loss for the period by the weighted average number of common and potential common shares outstanding during the period if the effect of the potential common shares is dilutive. The shares used in the calculation of dilutive potential common shares exclude options and RSUs to purchase shares where the exercise price was greater than the average market price of common shares for the period. The following table presents the calculation of basic and diluted net loss per share: Three Months Ended Nine Months Ended December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 Net income (loss) $ 56,069 $ (274,165 ) $ 353,718 $ (612,415 ) Weighted-average shares — basic 10,683,355 10,678,344 10,683,355 10,674,548 Effect of dilutive potential common shares 24,459 — 19,138 — Weighted-average shares — diluted 10,707,814 10,678,344 10,702,493 10,674,548 Net income (loss) per share — basic $ 0.01 $ (0.03 ) $ 0.03 $ (0.06 ) Net income (loss) per share — diluted $ 0.01 $ (0.03 ) $ 0.03 $ (0.06 ) Antidilutive employee stock options and RSUs 988,077 954,286 993,398 954,286 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | Effective November 9, 2017, we extended our noncancelable lease agreement through July 31, 2024 for our facilities at 6797 Winchester Circle, Boulder, Colorado. The lease includes base rent abatement for the first two months, or $55,583.33, and $145,000 of leasehold improvements granted by the landlord. At the start of the lease on August 1, 2019, the $145,000 will be recorded on our condensed balance sheets as leasehold improvements and deferred rent. The leasehold improvements will be amortized over the lesser of the lease term or the assets life and the deferred rent will be amortized against rent expense over the lease term. The minimum future lease payment, by fiscal year, as of December 31, 2017 is as follows: Fiscal Year Amount 2018 (three months remaining) $ 71,259 2019 293,585 2020 266,550 2021 343,167 2022 357,667 2023 372,167 2024 386,667 2025 130,500 Total 2,221,562 In March 2016, we entered into a loan and security agreement with Crestmark Bank. The loan is due on demand and has no financial covenants. Under the agreement, we were provided with a line of credit that is not to exceed the lesser of $1,000,000 or 85% of eligible accounts receivable. The interest rate is prime rate plus 2%, with a floor of 5.5%, plus a monthly maintenance fee of 0.4%, based on the average monthly loan balance. Interest is charged on a minimum loan balance of $500,000, a loan fee of 1% annually, and an exit fee of 2% and 1% during years two and three, respectively. As of December 31, 2017, we had no borrowings from the credit facility and had an additional $555,218 available to borrow. Aside from the operating lease, we do not have any material contractual commitments requiring settlement in the future. We are subject to regulation by the United States Food and Drug Administration ("FDA"). The FDA provides regulations governing the manufacture and sale of our products and regularly inspects us and other manufacturers to determine compliance with these regulations. We believe that we were in substantial compliance with all known regulations at December 31, 2017. FDA inspections are conducted periodically at the discretion of the FDA. Our latest inspection by the FDA occurred in October 2016. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 9 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION | The provisions of ASC 718-10-55 requires the measurement and recognition of compensation expense for all share-based payment awards made to our employees and directors, including employee stock options and RSUs, based on estimated fair values. The following table summarizes stock-based compensation expense related to employee stock options, RSUs and employee stock purchases for the three and nine months ended December 31, 2017 and 2016, which was allocated as follows: Three Months Ended Nine Months Ended December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 Cost of sales $ 539 $ 819 $ 1,617 $ 2,073 Sales and marketing 3,420 3,406 10,259 9,484 General and administrative 11,378 12,231 34,134 36,999 Research and development 806 1,542 3,325 3,855 Stock-based compensation expense $ 16,143 $ 17,998 $ 49,335 $ 52,411 Share-based compensation cost for stock options is measured at the grant date, based on the fair value as calculated by the Black-Scholes-Merton ("BSM") option-pricing model. The BSM option-pricing model requires the use of actual employee exercise behavior data and the application of a number of assumptions, including expected volatility, risk-free interest rate and expected dividends. There were no and 200,000 stock options granted and 66,750 and 141,750 stock options forfeited during the three and nine months ended December 31, 2017. Share-based compensation cost for RSUs is measured based on the closing fair market value of the Company's common stock on the date of grant. As of December 31, 2017, $152,000 of total unrecognized compensation costs related to nonvested stock options is expected to be recognized over a period of five years. |
RELATED PARTY TRANSACTION
RELATED PARTY TRANSACTION | 9 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTION | We paid consulting fees of $16,840 and $49,029 to an entity owned by one of our directors during the three and nine months ended December 31, 2017, respectively, and $16,309 and $57,484 during the three and nine months ended December 31, 2016, respectively, |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | We evaluated all of our activity as of the date the condensed interim financial statements were issued and concluded that no subsequent events have occurred that would require recognition in our financial statements or disclosed in the notes to our condensed interim financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN13
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation. The accompanying condensed interim financial statements have been prepared, in all material respects, in conformity with the standards of accounting measurements and reflect, in the opinion of management, all adjustments necessary to summarize fairly the financial position and results of operations for such periods in accordance with GAAP. All adjustments are of a normal recurring nature. The results of operations for the most recent interim period are not necessarily indicative of the results to be expected for the full year. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements. |
Cash and Cash Equivalents | Cash and Cash Equivalents. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments. |
Concentration of Credit Risk | Concentration of Credit Risk. We have no significant off-balance sheet concentrations of credit risk such as foreign exchange contracts, options contracts or other foreign hedging arrangements. We maintain the majority of our cash balances with one financial institution in the form of demand deposits. Accounts receivable are typically unsecured and are derived from transactions with and from entities in the healthcare industry primarily located in the United States. Accordingly, we may be exposed to credit risk generally associated with the healthcare industry. We maintain allowances for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments. The net accounts receivable balance at December 31, 2017 of $937,419 and at March 31, 2017 of $1,042,281 included no more than 6% from any one customer. |
Warranty Accrual | Warranty Accrual. |
Inventories | Inventories December 31, 2017 March 31, 2017 Raw materials $ 967,017 $ 857,345 Finished goods 309,818 321,067 Total gross inventories 1,276,835 1,178,412 Less reserve for obsolescence (30,000 ) (50,000 ) Total net inventories $ 1,246,835 $ 1,128,412 |
Property and Equipment | Property and Equipment |
Long-Lived Assets | Long-Lived Assets. |
Patents | Patents. |
Income Taxes | Income Taxes. |
Revenue Recognition | Revenue Recognition. |
Research and Development Expenses | Research and Development Expenses |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense recognized under ASC 718 for the three and nine months ended December 31, 2017 was $16,143 and $49,335, respectively, and for the three and nine months ended December 31, 2016 was $17,998 and $52,411, respectively, which consisted of stock-based compensation expense related to grants of employee stock options and restricted stock units ("RSUs"). |
Segment Reporting | Segment Reporting. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements. In July 2015, the FASB issued Accounting Standards Update 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory, ("ASU 2015-11"). ASU 2015-11 affects reporting entities that measure inventory using first-in, first-out (FIFO) or average cost. Specifically, ASU 2015-11 requires that inventory be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. ASU 2015-11 is effective for fiscal years beginning after December 15, 2016 and it has been adopted. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) ("ASU 2016-02"), which modified lease accounting for both lessees and lessors to increase transparency and comparability by recognizing lease assets and lease liabilities by lessees for those leases classified as operating leases under previous accounting standards and disclosing key information about leasing arrangements. ASU 2016-02 will be effective for the Company beginning in its third quarter of 2020 and early adoption is permitted. The Company is currently evaluating the timing of its adoption and the impact of adopting the new lease standard on its consolidated financial statements. However, the ultimate impact of adopting ASU 2016-02 will depend on the Company's lease portfolio as of the adoption date. |
SUMMARY OF SIGNIFICANT ACCOUN14
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of inventory | December 31, 2017 March 31, 2017 Raw materials $ 967,017 $ 857,345 Finished goods 309,818 321,067 Total gross inventories 1,276,835 1,178,412 Less reserve for obsolescence (30,000 ) (50,000 ) Total net inventories $ 1,246,835 $ 1,128,412 |
BASIC AND DILUTED INCOME AND 15
BASIC AND DILUTED INCOME AND LOSS PER COMMON SHARE (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of calculation of basic and diluted net loss per share | Three Months Ended Nine Months Ended December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 Net income (loss) $ 56,069 $ (274,165 ) $ 353,718 $ (612,415 ) Weighted-average shares — basic 10,683,355 10,678,344 10,683,355 10,674,548 Effect of dilutive potential common shares 24,459 — 19,138 — Weighted-average shares — diluted 10,707,814 10,678,344 10,702,493 10,674,548 Net income (loss) per share — basic $ 0.01 $ (0.03 ) $ 0.03 $ (0.06 ) Net income (loss) per share — diluted $ 0.01 $ (0.03 ) $ 0.03 $ (0.06 ) Antidilutive employee stock options and RSUs 988,077 954,286 993,398 954,286 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of minimum future lease payments, by fiscal year | Fiscal Year Amount 2018 (three months remaining) $ 71,259 2019 293,585 2020 266,550 2021 343,167 2022 357,667 2023 372,167 2024 386,667 2025 130,500 Total 2,221,562 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of stock-based compensation expense related to employee stock options | Three Months Ended Nine Months Ended December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 Cost of sales $ 539 $ 819 $ 1,617 $ 2,073 Sales and marketing 3,420 3,406 10,259 9,484 General and administrative 11,378 12,231 34,134 36,999 Research and development 806 1,542 3,325 3,855 Stock-based compensation expense $ 16,143 $ 17,998 $ 49,335 $ 52,411 |
ORGANIZATION AND NATURE OF BU18
ORGANIZATION AND NATURE OF BUSINESS (Details Narrative) - USD ($) | Dec. 31, 2017 | Mar. 31, 2017 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accumulated deficit | $ 21,595,892 | $ 21,949,610 |
SUMMARY OF SIGNIFICANT ACCOUN19
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | Dec. 31, 2017 | Mar. 31, 2017 |
Inventories | ||
Raw materials | $ 967,017 | $ 857,345 |
Finished goods | 309,818 | 321,067 |
Total gross inventories | 1,276,835 | 1,178,412 |
Less reserve for obsolescence | (30,000) | (50,000) |
Total net inventories | $ 1,246,835 | $ 1,128,412 |
SUMMARY OF SIGNIFICANT ACCOUN20
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||||
Federally insured limit | $ 250,000 | $ 250,000 | |||
Accounts Receivable | 937,419 | 937,419 | $ 1,042,281 | ||
Stock-based compensation expense | $ 16,143 | $ 17,998 | $ 49,335 | $ 52,411 | |
Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful lives of assets | 5 years | ||||
Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful lives of assets | 7 years |
BASIC AND DILUTED INCOME AND 21
BASIC AND DILUTED INCOME AND LOSS PER COMMON SHARE (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) | $ 56,069 | $ (274,165) | $ 353,718 | $ (612,415) |
Weighted-average shares - basic | 10,683,355 | 10,678,344 | 10,683,355 | 10,674,548 |
Effect of dilutive potential common shares | 24,459 | 0 | 19,138 | 0 |
Weighted-average shares - diluted | 10,707,814 | 10,678,344 | 10,702,493 | 10,674,548 |
Net income (loss) per share-basic | $ 0.01 | $ (0.03) | $ 0.03 | $ (0.06) |
Net income (loss) per share-diluted | $ 0.01 | $ (0.03) | $ 0.03 | $ (0.06) |
Antidilutive employee stock options and RSUs | 988,077 | 954,286 | 993,398 | 954,286 |
COMMITMENTS AND CONTINGENCIES22
COMMITMENTS AND CONTINGENCIES (Details) | Dec. 31, 2017USD ($) |
Minimum future lease payments, by fiscal year | |
2018 (three months remaining) | $ 71,259 |
2,019 | 293,585 |
2,020 | 266,550 |
2,021 | 343,167 |
2,022 | 357,667 |
2,023 | 372,167 |
2,024 | 386,667 |
2,025 | 130,500 |
Total | $ 2,221,562 |
COMMITMENTS AND CONTINGENCIES23
COMMITMENTS AND CONTINGENCIES (Details Narrative) | Dec. 31, 2017USD ($) |
Commitments And Contingencies Details Narrative | |
Amount of borrowings | $ 0 |
Amount available to borrow | $ 555,218 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | $ 16,143 | $ 17,998 | $ 49,335 | $ 52,411 |
Cost Of Sales [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 539 | 819 | 1,617 | 2,073 |
Selling And Marketing Expense [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 3,420 | 3,406 | 10,259 | 9,484 |
General And Administrative Expense [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 11,378 | 12,231 | 34,134 | 36,999 |
Research And Development Expense [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | $ 806 | $ 1,542 | $ 3,325 | $ 3,855 |
SHARE-BASED COMPENSATION (Det25
SHARE-BASED COMPENSATION (Details Narrative) | 3 Months Ended | 9 Months Ended |
Dec. 31, 2017USD ($)shares | Dec. 31, 2017USD ($)shares | |
Share-based Compensation Details Narrative | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants | 0 | 200,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited | 66,750 | 141,750 |
Unrecognized compensation costs related to nonvested stock options | $ | $ 152,000 | $ 152,000 |
RELATED PARTY TRANSACTION (Deta
RELATED PARTY TRANSACTION (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Director [Member] | ||||
Related Party Transaction [Line Items] | ||||
Consulting fees paid | $ 16,840 | $ 16,309 | $ 49,029 | $ 57,484 |